Peter Brandt, who has been in the business for quite a long time, has come up with a potential price pattern that could indicate a big move. Brandt said that Bitcoin’s (BTC) chart shape is an expanding triangle, which might lead to increased volatility. But he advised that one should not enter trades until a breakout has been confirmed.
Peter Brandt Warns of Bitcoin Volatility Ahead
Peter Brandt recently noted the formation of an expanding triangle in Bitcoin price, on the basis of which a large market movement often occurs. The pattern is marked by trendlines that expand over time, which points to higher volatility. Nevertheless, Brandt told traders to wait for a breakout before taking action.
Perspective on charting
I do NOT trade opinions. I trade set-ups via classical charting principles. I avoid trades when price is range bound. My entry is on completed patterns. $BTC displays what is known as an inverted or expanding triangle. No breakout yet so no trade. pic.twitter.com/xHYxJMpBP1— Peter Brandt (@PeterLBrandt) August 12, 2024
This is in conformity with the disciplined trading strategy advocated by Brandt, where trading is done using classical charting techniques. He pointed out that it is better to wait for the whole pattern of a given currency to be completed before placing a trade, which reduces the chances of making losses due to price ranges.
Bitcoin Sell-Off Sparks Market Uncertainty
Last week, Bitcoin was marked by a sell-off; the cryptocurrency’s prices fell to an intraday low of $57,663 on Monday. It traded at $62,755 earlier but has been on the downside since then. As of the time of writing, one Bitcoin goes for $59,271, a 1.61% dip within the last 24 hours.
The graph below shows that the expanding triangle pattern indicates that Bitcoin may be preparing for a big move. Still, with no actual breakout confirmation, the direction of that move is unclear. This continues to affirm Brandt’s advice to the traders not to be overly eager to trade.
Peter Brandt’s analysis stresses the need to be patient when trading, and this is evident in the volatile crypto market. He advised that traders wait for a breakout from the consolidation pattern on the chart in the form of a triangle. With this approach, one can minimize losses from speculative moves.
Brandt’s view is rather important because it is necessary to trade only confirmed patterns. His focus on disciplined trading strategies is a testimony to the fact that much needs to be done in the current market environment.
Also Read: How a Bitcoin Reserve Could Slash the $35 Trillion US Debt
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